VUG vs XLU: Correlation & Overlap
Vanguard Growth ETF (VUG) and Utilities Select Sector SPDR Fund (XLU) show a near-zero relationship: their 3-year correlation of weekly returns is 0.08. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VUG and XLU?
Across a 3-year window, the weekly returns of VUG and XLU correlate at 0.08, near zero, meaning they move largely independently. The past 12 months show a weaker link (-0.23) than the 3-year average (0.08). Stretching to 5 years gives 0.28, with an annualized covariance of 23.1 %².
Within VUG's tracked universe of 103 assets, XLU comes in at #92 by 3-year correlation. Over the last 12 months VUG came out ahead by 12.1 percentage points (+16.2% against +4.1%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.27 to 0.49.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
VUG vs XLU: side by side
| VUG (Vanguard Growth ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.2% | +4.1% |
| 5-year return | +78.4% | +46.3% |
| Volatility (ann.) | 19.4% | 15.8% |
| Beta vs S&P 500 | 1.28 | 0.26 |
| Max drawdown (3Y) | -22.8% | -13.1% |
| Dividend yield | 0.40% | 2.70% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $372.0B | $23.1B |
| Sector / category | ETF · US Style | Sector ETF |
VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between VUG and XLU
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%). Only by XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), AEP (4.94%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31.
Year-by-year returns
| Year | VUG | XLU |
|---|---|---|
| 2022 | -33.2% | +1.4% |
| 2023 | +46.8% | -7.2% |
| 2024 | +32.7% | +23.3% |
| 2025 | +19.4% | +16.0% |
| 2026 | +9.6% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VUG and XLU good diversifiers for each other?
Yes: at 0.08, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VUG and XLU?
Using weekly returns as of 2026-08-27: 0.08 over 3 years, with -0.23 over the last year and 0.28 over 5 years.
Is XLU a good diversifier for VUG?
Yes: at 0.08, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do VUG and XLU overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vug-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vug-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VUG correlations · XLU correlations
